Ukrainian restaurant chain Lviv Croissants has opened its first establishment in France in the city of Cannes, the franchise was acquired by local entrepreneurs who own a Michelin-starred French cuisine restaurant, according to its press release.
“For six months, our team did not just work on creating a good establishment, but thoroughly researched the French market and the food culture of the region to win the hearts of French foodies. We believe that our croissants will be a new gastronomic discovery for them. Everything else remains unchanged: traditional Lviv atmosphere, delicious quality coffee and high standards of service”, – noted Lviv Croissants franchising managers.
The first Lviv Croissants in France is located in the center of Cannes, on Rue d’Antibes. The establishment has 13 seats inside and another 24 on the summer terrace. The area of the venue is 70 m². The interior combines natural wooden elements, vegetal decoration and comfortable places for rest. The kitchen was made open so that visitors could see the process of croissants preparation.
The basis of Lviv Croissants menu in Cannes, as well as in the whole chain, is freshly baked croissants. Some fillings are developed taking into account preferences of French guests – local chefs were specially invited for this purpose. In total, there are more than 35 different fillings in the menu.
Lviv Croissants added that in time they plan to introduce croissant delivery from the new establishment in Cannes.
France has become the fifth country outside Ukraine, where Lviv Croissants operates. The chain also has facilities in Poland, Slovakia, Czech Republic and the USA. Lviv Croissants is planning to open new establishments of the chain.
Lviv Croissants is a Ukrainian international franchise restaurant chain founded in 2015. It specializes in making croissants. The brand entered the European market in September 2022. The first establishment opened in the Polish city of Zgorzelec. Now the chain has 180 establishments throughout Ukraine, 11 in Poland and 1 each in Slovakia, Czech Republic, France and USA.
It is a part of Fast Food Franchising Group. Fast Food Franchising Group LLC was founded in 2015 in Lviv.
The company’s net loss in 2023 amounted to UAH 598.3 thousand, compared to UAH 483 thousand net profit a year earlier. Last year’s income increased by 55.1%, to UAH 6.939 mln, debt obligations – by 9.7 times, to UAH 188.9 th, while assets decreased by 19%, to UAH 1.89 mln.
Beneficiaries of the company are PE Firma Infobud, which owns 50% of shares, Eugene and Andrei Galitsky (20% each), as well as Yuriy Zagrodsky (10%).
Issue #2 – January 2025
The purpose of this review is to provide an analysis of the current situation on the Ukrainian currency market and a forecast of the hryvnia exchange rate against key currencies based on the latest data. We analyze current conditions, key influencing factors, and likely scenarios.
Analysis of the current situation
The hryvnia exchange rate has stabilized in the Ukrainian currency market after the traditional seasonal increase in demand for the currency in December. As of the end of January, the US dollar on the cash market has rolled back after peaking in the middle of the month to the level of UAH 41.8-42.3/$, while the euro continued to grow to UAH 43.57-44.32/€. This is generally within our previous forecast, although in some places higher rates were recorded, which did not reflect the general market trend.
The increase in the NBU’s key policy rate to 14.5% signals the regulator’s attempts to curb inflationary and devaluation expectations of businesses and households. At the same time, the NBU revised its own inflation forecast upward to 8.4%, which may offset its stabilization measures.
An important factor in market stability remains the record volume of cash imports by banks. In December, banks imported USD 1.58 billion, which helped meet high demand and reduce the risk of speculative pressure on the exchange rate. In total, USD 15.9 billion was imported in 2024, which indicates a high level of dollarization of the Ukrainian economy and savings of households and businesses.
The steady deepening of dollarization and the overall currencyization of the economy indicates a low level of confidence among economic agents in statements about currency stability. At the same time, however, there are no factors that would create noticeable distortions in the FX market or a stir that could upset the balance.
The external context also plays an important role, and at the same time, it remains highly dynamic – there are regular reports that can significantly affect the ratio of key currencies, and thus their dynamics in the Ukrainian market. Some of the most notable recent events:
– The European Central Bank (ECB) cut interest rates by 25 basis points, which will affect the attractiveness of the euro for investors.
– Stagnation in the eurozone economy remains an important driver of the euro’s weakening.
– The US Federal Reserve is still maintaining a tight monetary policy, which supports the dollar.
– Potential “exchange rate wars” between the US and the EU could affect global currency markets.
Dollar exchange rate forecast
Short-term forecast
The hryvnia exchange rate against the dollar is expected to enter the range of 41.5-42 UAH/$ in the coming weeks. Demand for currency from businesses and households remains the main driver of exchange rate fluctuations. The NBU’s consistently high foreign exchange reserves, which allow it to quickly manage the market situation, act as a deterrent.
The current spread between the USD buying and selling rates is UAH 0.45, which indicates the stability of the foreign exchange market. Changes in this indicator may signal changes in the supply and demand balance.
Medium-term outlook
In the first half of 2025, the exchange rate is likely to gradually move to 44 UAH/$.
– The risk to the hryvnia will increase if the population continues to actively buy up foreign currency amid high devaluation expectations.
– A possible Fed rate decision in the second quarter of 2025 will have a direct impact on the dollar.
Euro exchange rate forecast
Short-term outlook
The euro is likely to move towards the level of 43.8-44.8 UAH/€.
– The ECB’s rate cut to 2.75% makes the euro less attractive to investors.
– The stable average spread between buying and selling the euro at UAH 0.525 indicates that there are no prerequisites for sharp changes in the euro exchange rate.
Medium-term outlook
Further euro depreciation is possible if:
– Eurozone stagnation deepens due to weak economic activity.
– Further cuts in ECB rates, which will make the euro less competitive against the dollar.
If the ECB continues its policy of gradual easing, the hryvnia exchange rate against the euro may remain more stable than against the dollar.
Key factors influencing the foreign exchange market
1. The NBU’s monetary policy – raising the key policy rate affects liquidity and restrains inflation.
2. Demand for foreign currency – households and businesses continue to buy foreign currency, which is the main internal driver of devaluation and a key factor of pressure on the hryvnia exchange rate.
An exclusive from the KYT Group analyst team for our newsletter recipients: how Ukrainians’ preference for different currencies is changing.
As one of the largest foreign exchange market operators , KYT Group presents its own cross-section of the share of transactions in different currencies that we observed in our network covering approximately 30 major cities of Ukraine, where almost one hundred currency exchange offices operate.
Below is a comparison of the percentage of transactions in different currencies in KYT Group’s FEAs.
Now let’s make a brief analysis of the available data that can be considered representative:
1. Decrease in the share of the US dollar (USD) from 78.71% to 74.07%. Despite this, the US dollar remains the dominant currency of transactions, but its share has decreased, which may indicate an increase in the role of the euro and other currencies in the foreign exchange market.
2. An increase in the share of the euro (EUR) from 20.80% to 25.15%. There has been an increase in the use of the euro, which may be a result of large emigration of economically active Ukrainians to the euro area, more active foreign trade with the EU, changes in business payment preferences, or diversification of household savings.
3. A significant increase in the Polish zloty (PLN) from 0.36% to 0.56%. This may be due to the activity of labor migrants, deepening business ties between the countries, and the growth of financial flows between Ukraine and Poland.
4. An increase in transactions with the British pound (GBP) from 0.08% to 0.15%. This is likely to be a sign of growing interest in British assets or an increase in the share of cross-border settlements between Ukrainians and some economic agents with the UK.
5. The Swiss franc (CHF) increased slightly from 0.03% to 0.04%, indicating a consistently low demand for this currency in the Ukrainian financial segment.
6. The share of other currencies (among which we most often record the forint, Czech koruna, Romanian and Moldovan lei) increased from 0.02% to 0.03%, indicating a slight increase in the use of alternative currencies in settlements or cross-border transactions.
Overall conclusion
The US dollar retains its leadership, but its share is declining, while the euro and Polish zloty are becoming more popular. This may indicate a reorientation of financial flows to the EU, as well as attempts by businesses and individuals to diversify their currency transactions.
This material was prepared by the company’s analysts and reflects their expert, analytical professional judgment. The information presented in this review is for informational purposes only and cannot be considered as a recommendation for action.
The Company and its analysts make no representations and assume no liability for any consequences arising from the use of this information. All information is provided “as is” without any additional guarantees of completeness, obligations of timeliness or updates or additions.
Users of this material should make their own risk assessments and informed decisions based on their own assessment and analysis of the situation from various available sources that they consider to be sufficiently qualified. We recommend that you consult an independent financial advisor before making any investment decisions.
REFERENCE
KYT Group is an international multi-service product FinTech company that has been successfully operating in the non-banking financial services market for 16 years. The company’s flagship business is currency exchange. KYT Group is one of the largest operators in this segment of the Ukrainian financial market, is among the largest taxpayers, and is one of the industry leaders in terms of asset growth and equity.
More than 90 branches in 16 major cities of Ukraine are located in convenient locations for customers and have modern equipment for the convenience, security and confidentiality of each transaction.
The company’s activities comply with the regulatory requirements of the NBU. KYT Group adheres to EU standards, having a branch in Poland and planning cross-border expansion to European countries.
The “Hope and Unity” Charitable Foundation continues to actively support the Ohmatdyt Children’s Hospital. Thanks to caring Ukrainians and the support of the Foundation’s partners, we have managed to raise significant funds for the purchase of necessary equipment, medicines and materials.
This week, a modern lung ventilator was delivered to the hospital, which will help save the lives of the youngest patients. In addition, the foundation provided the oncology department with new beds and medical instruments. A recreation room with games and educational materials was organized for children undergoing long-term treatment.
“We understand how important the atmosphere in which children are treated is for them,” says PIB, founder of the ‘Hope and Unity’ Foundation. – “That is why we strive to create the most comfortable conditions for young patients and their parents at Okhmatdyt.
The “Hope and Unity” Foundation calls on all those who care to join the charitable cause and support the Okhmatdyt Children’s Hospital. Every hryvnia, every little thing matters and can save a child’s life.
How to help:
Together we can create a future for every child!
CHARITY, CHILDREN, DISEASE, foundation, HELP, Hope and Unity, SUPPORT, ОХМАТДИТ
Germany’s GDP in the fourth quarter of 2024 decreased by 0.2% compared to the previous three months, according to a report by the German Federal Statistical Office (Destatis), which presented preliminary data. The consensus forecast of experts, cited by Trading Economics, predicted a 0.1% decline in GDP.
Consumer and government spending increased last quarter, but exports declined significantly, Destatis said.
In annual terms, the country’s GDP also decreased by 0.2% in October-December, adjusted for the number of working days. Analysts on average did not expect any changes. In the third quarter, Germany’s economy grew by 0.1% quarter-on-quarter and shrank by 0.3% year-on-year, as previously reported.
For the whole of 2024, it decreased by 0.2% after a 0.3% decline a year earlier. Final data on the dynamics of German GDP for the fourth quarter will be published on February 25.
PJSC “HC ‘Kyivmiskbud’ has officially started the process of preparation for additional capitalization, there are also expectations of financial assistance from the government and participation in additional capitalization from minority shareholders, said Vladislav Andronov, Deputy Chairman of the KSCA on the implementation of self-governing powers, Chairman of the Commission for solving problematic issues related to the activities of ‘Kyivmiskbud’, at a meeting with investors on Wednesday.
He reminded that a meeting of the company’s shareholders is scheduled for February 14, at which it is planned to consider the issue of bringing the company’s charter and internal regulatory documents in compliance with the current legislation, as well as creating the necessary conditions for an additional issue of shares. According to Andronov, after making amendments to the charter and regulations on the supervisory board, the issue of the additional issue itself may be decided at the next meeting.
“There is a textual norm in the city budget that in case the decision is taken by the meeting of shareholders of Kyivmiskbud on additional capitalization, such funds, about UAH 2.6 billion, are provided for. Regarding minority shareholders (they own 20% of KGS), the city is interested in their participation in additional capitalization”, – Andronov said.
As reported, the Kyiv City Council supported the decision (No. 155/9964) to increase the authorized capital of PJSC “HC ‘Kyivmiskbud’ to stabilize the financial position of the company through an additional issue and purchase of shares up to UAH 2.56 billion. The Kyiv City Council also supported the decision (No. 155/9963) to request the Cabinet of Ministers to consider compensating HC Kyivmiskbud for the total planned losses of UAH 2.28 billion related to the completion of Ukrbud’s facilities, in particular by means of soft loans and other forms of assistance.
As for compensation for “Ukrbud” facilities, the city is actively corresponding with the Government, but most of the responses from ministries and departments are formally negative. In particular, the director of the Department of Intergovernmental Relations and Local Budgets Policy of the Ministry of Finance, Oleksandr Koren, replied that “the issue of realization of the above-mentioned compensation at the expense of the state budget can be considered only within the limits of its financial capabilities, which are extremely limited under the conditions of acute budget deficit caused by the martial law conditions”.
Thus, the main hope of investors to launch Kyivmiskbudget projects is on additional issue from the city budget resources. According to Andronov, after passing all the procedures, the Kyiv City Council plans to allocate budgeted funds to the company during 2025. Regarding the stage of restoration of projects and terms of their completion – this will be decided directly in “Kyivmiskbud”, taking into account the financial capacity and construction readiness of projects.
As reported, in March 2024 the Kyiv City State Administration established a temporary commission to solve problematic issues related to the activities of PJSC “HC ‘Kyivmiskbud’.
According to the results of the audit of “Kyivmiskbud”, conducted in 2023 by the state enterprise “Baker Tilly Ukraine Consulting”, LLC “Audit firm NHD-AUDIT” and LLC “Ernst & Young”, it was found that there were no signs of actions to bring the company to bankruptcy, concealment of the facts of financial insolvency or mass transactions by related parties. At the same time, the auditors found that the activity of Kyivmiskbud was disturbed due to external factors: COVID-19, full-scale war, the factor of “Ukrbud”.
HC “Kyivmiskbud” was established on the basis of the property of the state municipal construction corporation “Kyivmiskbud” in 1994 by combining in its authorized capital controlling stakes of 28 enterprises and other assets. The HC includes 40 JSCs, in which the company holds shares, six subsidiaries and 51 enterprises on the rights of associate member.
The main shareholder of PJSC HC Kyivmiskbud, according to the National Commission on Securities and Stock Market (NCSSM), is Kyiv City Council (80%).
China’s total non-financial direct investment (ODI) overseas in 2024 rose 10.5 percent to $143.85 billion, the Ministry of Commerce said. The amount of money invested in states along the Belt and Road rose 5.4 percent to $33.69 billion, Xinhua news agency quoted the ministry as saying.
The number of workers sent abroad last year reached 409,000, up 17.9 percent. As a result, 594,000 Chinese workers were employed abroad at the end of December.
The amount of overseas contracting work performed by Chinese companies rose 3.1% to $165.97 billion.
As reported, China’s total ODI grew 6% through 2023.
